(The newspaper online) AgriAnalyse reported on the consequences of price discrimination on agriculture and the value chain on Friday. The report was commissioned by NorgesGruppen.
NorgesGruppen, among others, is behind Kiwi and Meny and has a total market share of 43 percent. The grocery giant has better buying conditions than Competitors Coop and Rema 1000. TIn the past, the differences were as high as 15 percent.
According to the Norwegian Competition Authority, the differences are now smaller, but still significant.
NorgesGruppen wants to maintain its position with the best supplier conditions in the industry. At the same time, Coop, Rema 1000 and Oda have all done their part to overcome what they believe is unfair price discrimination.
Reitan and Oda, among others, have reported that prices will be lower in the long run. In addition, their reports indicate that it will be easier for new players to establish themselves in the Norwegian grocery market.
Peasant team: – Dead end
On Friday, the congregation behind the NorgesGruppen gathered at Sentralen in Oslo. And they believe the grocery giant should be allowed to continue on its own site. The Norwegian Competition Authority does this too.
One of the main objections to ending discrimination is that prices will go up. Numerous reports have demonstrated that higher prices in stores may be a consequence of this in the short term, but in the long term they are likely to decrease.
This also applies to reports ordered by Reitan.
Adjectives are set loosely on either side.
«Wrong medication, dead end, derailment.»He mentioned the number of those who were detained supports.
The Peasants Association expressed its great concern if the Minister of Trade and Industry lifted the ban.
– This is bad for the value chain and could undermine Norwegian agricultural policy, says Sigrid Hornegard, Secretary General of Norwegian Farmers Association.
In particular, she asserts that she will strike Suppliers of meat, fruits and vegetables. The reason is, among other things, that EMV brands are so big.
For example, the share of EMV in ground meat is about 80 percent, and it is also high in other types of meat.
NorgesGruppen and Reitan have the largest holdings in Bama. They are the largest wholesaler of vegetables and fruits in Norway.
– Hjørnegård stated that it is not possible to start as a fruit and vegetable wholesaler without agreements with Bama.
She indicated that they are not against EMV. But prohibiting price discrimination will primarily affect independent brand suppliers. They will have their room to negotiate discounted at the meeting with the chains.
It takes place from Tyne and Nortora
– We fear the ban will lead to more EMV, and could replace the brands of Tine and Nortura (the company behind Gilde and Prior, editor’s note) on store shelves, she says.
The Farmers’ Association also fears that more EMV will lead to more imports of foreign goods.
– This is predictable data. Unfortunately, they have made a habit of trying to build a narrative around both the significant threat that EMV supposedly poses, and that this entails a negotiation ban. Knut Lutniz asserts that both parts are equally wrong. is pCoop’s Senior Communications and Government Communications Adviser.
Coop believes that if the regulation is not introduced, more people than consumers will suffer.
– We think it is unfortunate that the Farmers’ Association has undertaken the tasks of the NorgesGruppen in this matter. If competition promotion measures are not introduced, it will lead to more concentration in the market. It harms farmers, industry and consumers alike.
– Rima deplores the criticism of the Norwegian Farmers Association
Authority contact Kårstein Eidem Løvaas at Reitan Retail believes this is a fallacy There should be no negotiations between suppliers and chains.
– must include Go through tough negotiations on prices and promotions as they are negotiated in the industry today, he says, and explains:
– The only difference is that at the request of the Norwegian Competition Authority, you must document why you are being granted the discount you are giving. You can’t make discounts just because you’ve come to like each other over time, he says.
If the regulation is introduced, only the dominant suppliers will be affected. An example here is Tine.
– What do you think about the fear of EMV surge?
Reitan Retail is not entitled. We can guarantee that regulations prohibiting unfair price discrimination will not affect our investment in EMV.
– We have more EMV than NorgesGruppen because we have to. The focus on the supply chain is so great that we had to do this, among other things, to increase our competitiveness. It’s not a proper concern on their part.
Every time politicians want to do something, it’s called a dead end. Everyone agrees the competition is really bad, but no one is willing to do anything, says Løvaas.
Reitan Retail cannot directly answer whether introducing unfair price discrimination will reduce EMV.
The consultation proposal to ban unreasonable price discrimination before Christmas has expired. Industry Minister Jan Christian Pfister (AP) announced that they would conclude the case shortly.
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